Amazon to launch payment through UPI soon; to take on rival Flipkart

Amazon India is expected to enable payments through the UPI system in another month, AP Hota, CEO NPCI told Financial Express.

&nbspPhoto Credit:&nbspIndiatimes

Mumbai: E-commerce giant Amazon India may soon launch payments through the Unified Payments Interface (UPI) for transactions made on its website.

The e-tailer is expected to enable payments through the UPI system in another month, AP Hota, CEO NPCI told Financial Express.

Keeping up with the competition, Amazon's decision comes at a time when Bengaluru-based Flipkart has already made provisions for UPI payments through its PhonePe app. Around 40 per cent of all transactions are done through PhonePe, the report said.

With an aim for better adoption, NPCI plans to reduce the charges that banks pay it for Immediate Payment Service (IMPS). Currently, banks pay 50 paise for transactions below Rs 1,000 and the NPCI pans to reduce it to 25 paise.

The NPCI has also reportedly approached the RBI asking it to allow Google India to enable transactions through UPI. Considering Google's reputation, several banks may partner with it, the report said.

Out of the Rs 495 crore budget allocated for promoting digital payments, the government has spent around Rs 27 crore so far.